The distribution of Alma Media's Kainuu newspapers transferred to a new company

Alma Media Corporation Press Release 7 March 2014, 12:00 p.m. (EET)

THE DISTRIBUTION OF ALMA MEDIA'S KAINUU NEWSPAPERS TRANSFERRED TO A NEW COMPANY

The early morning delivery and the weekend delivery of the newspaper Kainuun Sanomat to sparsely populated areas carried out by Itella will terminate at the end of August and will continue with a new cooperation partner from the beginning of September 2014. Alma Regional Media, the publisher of the newspaper, has signed a preliminary contract with Suomalainen Lehtipaino Oy regarding distribution cooperation in the Kainuu region. In addition to Kainuun Sanomat, the early morning distribution includes the company's local subscription papers Ylä-Kainuu, Sotkamo and Kuhmolainen.

Itella, the current early morning distributor of the newspapers in the Kainuu region, has terminated its early morning delivery contracts in most other regions as well, including Northern Finland.

The Senior Vice President of Alma Regional Media, Kari Juutilainen, says that they even failed to reach cost negotiations with Itella in the Kainuu region. Itella wanted to develop a wider early morning distribution network in Northern Finland and because this plan failed the company wanted to withdraw from early morning distribution in the Kainuu region altogether.

Kainuun Sanomat Editor-in-Chief Markus Pirttijoki reiterates that efficient early morning delivery in regional centres is essential and the service level in these areas should be maintained. According to him, a good service level includes maintaining the weekend distribution in sparsely populated areas.

--As a printing press, it is a natural step for us to expand our business operations to distribution. We wish to extend our production chain from press to distribution and offer newspapers a more comprehensive service, says Suomalainen Lehtipaino Oy Managing Director Tenna Talvi-Pietarila.

According to Talvi-Pietarila, Suomalainen Lehtipaino Oy will establish a separate company for distribution operations, and the printing house will be the company's principal owner. Suomalainen Lehtipaino Oy is a printing house operating in Kajaani and its print products include Kainuun Sanomat, Alma Regional Media's local newspapers in the Kainuu region as well as the city paper Koti-Kajaani.

The early morning distribution of Alma Regional Media's other newspapers in Northern Finland will soon be resolvedresolved as Itella's contract terminates. The distribution in the small separate area of Tornio will be transferred to Alma Regional Media's distribution company Alma Manu at the beginning of July. Alma Manu is already responsible for the early morning deliveries of Pohjolan Sanomat and Lapin Kansa. The distribution of two local newspapers, Raahen Seutu and Pyhäjokiseutu, will be resolved with Kaleva by this autumn.

Alma Regional Media publishes five regional newspapers, 17 local papers and nine town papers in different parts of Finland. The business unit also includes the printing press and distribution house, Alma Manu.

Alma Media is a media company focusing on digital services and publishing. In addition to news services, the company's products provide useful information related to lifestyle, career and business development. The services of Alma Media have expanded from Finland to the Nordic countries, the Baltics and Central Europe. The company employs 1,965 professionals (excluding distributors), of whom approximately one third work outside Finland. Alma Media's revenue in 2013 totalled approximately MEUR 300. Alma Media's share is listed on NASDAQ OMX Helsinki. Read more at www.almamedia.com.

Date:
7.3.2014, 13:00

News type:
Press release

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Alma Media is a media company focusing on digital services and publishing. In addition to news services, our products provide useful information related to lifestyle, career and business development. Our services have expanded from Finland to the Nordic countries, the Baltics and Central Europe.